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French Parliament Passes Bill To Tax US Tech Firms

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The French parliament passed a Bill proposing 3 percent tax on major tech companies providing internet services in that country. The tax will be applied with retroactive effect from the beginning of the year.

The French parliament went ahead with its proposal despite President Donald Trump ordering an investigation into the French government's proposed tax.

The Senate voted in favor of the French Digital Services Tax (DST) Bill Thursday, days after the National Assembly, the lower house, ratified it.

The tax applies only to companies with total annual revenues of at least EUR750 million ($845 million) globally and EUR25 million in France.

American tech giants such as Facebook and Google, owned by Alphabet Inc., will be the worst affected by the proposal.

Currently, major tech firms such as Google and Facebook escape corporate tax in France as they declare most of their profits in the United States.

"The United States is very concerned that the digital services tax which is expected to pass the French Senate tomorrow unfairly targets American companies," US Trade Representative Robert Lighthizer had said in a statement Wednesday.

France is unfairly targeting the tax at certain U.S.-based technology companies, according to the trade representative.

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